Closed Rentals #10 and #11 today
#10 is a super clean move-in ready 3/1/1 in my favorite neighborhood in south kansas city. 2nd house using my portfolio lender Arvest. Purchase was 62k with market rent around $900. No work required on this one.
#11 is a house I previously had negotiated on and walked away from. It sat on market for a month and went back and picked up in for $500 less than my previous max offer. This one cost $55,000 in good condition, does need some tree work and a roof. In order to swing the deal quickly this was an all cash deal and Arvest is starting a file today for a cash-out mortgage on it, which I will turn into three downpayments on additional rental properties. The house is a largish 3/1 with an add-on den with fireplace. Decent blue collar area in south grandview. I had previously bought a house on the same street and got a high volume of calls/interest on it. I rented that other house at 800 but I'm sure this one will rent at least 875. It's larger, still has functional garage, and I really was getting a large number of calls and showings on the other house - I ended up turning down three deposits.
Other Updates:
Had three move-ins for May 1st on new leases. #8 house renovation in progress, the fence across the back was completed. Installed the new roof on #7 house and signed a new lease with the tenant I inherited from previous owner - who did not have a valid lease in effect for over 24 months. Had to pay $925 for an enormous dying elm tree removal on house #3 (Wally) and that was after I saved 575 by shopping around and going with a craigslist guy. Spent 3 grand on two fences at #6 and #8 but they backyard view is incredibly better now for both. Also had a microwave die at house #1 (Bella).
Inventory: I have two new-to-me vacant houses to fill and one rehab in progress. All other units rented out and now occupied. Hope to close about four more in May/June then take a few months off from acquisition and let things settle in for a while as I will have completed deployment of my primary residence home equity loan and the proceeds from a fancy car I used to have into rental properties. So future acquisition will be a bit slower than the past five months have been, as one of my goals for this was to pretty much leave savings alone. After the next four I'll get into a pattern using cash flow to pay down mortgages one at a time, refinance out, and redeploy. Plus the day job is really getting crazy with some initiatives the company has going on.